MONTREAL and RESTON, Va. -- Teleglobe Inc. today announced a major reorganization strategy to renew its focus on its core voice and related data business to maximize stakeholder value. The Company is exiting from its hosting business and portions of its data transmission business to facilitate its renewed focus on its core operations. By exiting these businesses, Teleglobe will free itself from the high costs associated with recently built infrastructure, primarily developed to support the discontinued data and hosting operations. To facilitate this process, Teleglobe is applying to the Ontario Superior Court of Justice for an Order providing creditor protection under the Companies' Creditors Arrangement Act (CCAA). The Company will initiate ancillary filings in the United States and United Kingdom. As part of the reorganization strategy, Teleglobe reduced its workforce by 850 people. Approximately 950 jobs will remain at the Company to support the core business and its restructuring process. Fifty percent of the job losses will occur in the United States and 15 percent in Canada. Job losses are across all organizational levels. These losses relate primarily to the terminated data and hosting operations. John Brunette has been appointed Chief Executive Officer to oversee the implementation of the overall strategy and to lead the financial restructuring process and the sale of non-strategic assets and businesses. Previously, he served as Teleglobe's Executive Vice President and Chief Administrative Officer. Executive Vice President of Voice, Serge Fortin, has been appointed Chief Operating Officer with the mandate to lead the operations of the core voice and related data business. Teleglobe's board of directors has accepted the resignation of Charles Childers, formerly the Company's president. Teleglobe has secured US$100 million of debtor-in-possession (DIP) financing from BCE Inc. This financing will support the continued operations of the core business, including the servicing of customers and the payment of employee wages and benefits. Teleglobe